Binance CEO asserts that the exchange is not planning to cut ties with US-based intermediary companies.
In a tweet today, Changpeng Zhao, Binance CEO, and founder denied reports claiming that the exchange is considering ending its relationship with United States partners.
4. False. https://t.co/qjqLrx3TGF
— CZ 🔶 Binance (@cz_binance) February 17, 2023
CZ’s comment comes a few hours after Bloomberg published a report about the matter.
Bloomberg Says Binance Is Considering Terminating Relationship With US Firms
Bloomberg claimed it learned from a source that Binance, the world’s largest exchange by 24-hour trading volume, is reportedly considering terminating its relationship with United States business partners.
According to the source, the exchange plans to cut ties with US companies after it almost ran into trouble earlier this week due to its relationship with a banking partner and stablecoin issuer.
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The source told Bloomberg that Binance is weighing the option of severing ties with U.S.-based intermediary firms, including banks and services companies, amid increased regulatory scrutiny from the SEC.
Per Bloomberg, the world’s largest cryptocurrency exchange is also reassessing venture capital investments in the US, according to the unnamed source. The person familiar with the matter also said Binance would likely consider de-listing U.S.-based cryptocurrency projects, including popular Circle stablecoin USD Coin (USDC).
Although Binance CEO claims the news is false, his previous tweet on Monday signaled the potential retreat.
“Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm,” CZ noted following Paxos Trust’s decision to discontinue the issuance of Binance-linked stablecoins.
Binance Not Authorized to Serve US Customers
It is noteworthy that Binance Holdings is not authorized to operate in the United States. However, Binance Holdings has a partnership with Binance.US, a smaller U.S.-based crypto trading company, which has stated clearly its plans to continue operating in the country despite an intense regulatory crackdown.
Reacting to the development, a Binance spokesperson told Bloomberg:
“Like every other blockchain company, we are conducting a careful cost-benefit analysis and will pivot our business as necessary to protect our global user base.”
Meanwhile, Binance has recorded tremendous growth amid the crypto winter. Following the collapse of crypto exchange FTX, Binance claimed a huge chunk of the market, accounting for 55% of the global crypto spot trading, according to CryptoCompare.
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